Allies warn, Massis to question trade-offs in deal discussed with XP | OneFootball

After consulting allies, São Paulo president Harry Massis is expected to organize a new meeting with the financial firm XP to give the club’s response to the investment proposal made at the end of last month.

Two points greatly displeased those at São Paulo, according to what AVANTE MEU TRICOLOR has learned.

The first, obviously, was the interest rate. The report found that the ceiling of the deal could exceed R$ 1.7 billion, while keeping the pre-established structural model, with around R$ 700 million to reduce debts and R$ 500 million for the modernization of Morumbi and investments in professional football.

Preliminary information indicates that the investment contract would last 30 years, with estimated interest of 1.1% per month.

Massis’ political allies believe the interest rate is unfavorable and that the long repayment period could make the loan impossible to pay off. One of the points to be discussed is the adoption of an annual rate, at the very least.

But the point that was worst received on São Paulo’s side was the requirement that the club tie XP’s investment to Morumbi’s naming rights.

Additionally, the company would hold the stadium’s naming rights and a direct percentage share of the club’s overall revenues, including ticket sales, television broadcasting rights, commercial sponsorships, and events.

According to what AMT learned, some sectors of the club complained that the minimum acceptable condition for São Paulo to continue talks with XP is to require that amounts from commercial deals, such as naming rights, be deducted from the loan debt.

Furthermore, people at the club believe Morumbi’s naming rights are an important source of revenue.

Currently, Mondelez pays R$ 25 million per year under a deal signed at the end of 2023 and running through December.

São Paulo is reportedly asking around R$ 60 million per season from interested parties in the market. The main one is electric carmaker BYD, which offered Tricolor a ten-year deal.

The structure of the deal with XP does not provide for São Paulo to be turned into a Sociedade Anônima do Futebol (SAF).

In return for the capital injection, XP would take on financial co-management powers by appointing a manager to São Paulo’s finance department.

This article was translated into English by Artificial Intelligence. You can read the original version in 🇧🇷 here.